Manufacturing

Lord Barnett Excerpts

Thursday 8th March 2012 Lords Chamber

[Lord Green of Hurstpierpoint]

On my noble friend’s first question, I believe that my right honourable friend the Secretary of State made an important point about a strategy that looks at the various sectors of this economy and identifies the appropriate measures that government can take to support them. It is of course true that while deficit reduction and fiscal consolidation is the most urgent challenge, we need to find a path of growth for this country that is more balanced and stable. On the question of the Royal Bank of Scotland, the answer is clear: we do not believe that breaking up the RBS is the right answer to addressing the financial issues in this country.

[Lord Barnett]

My Lords, before the Minister sits down, could he tell us what specific strategy his department has to deal in this area of manufacturing with the Chinese, if we are ever to hope to be able to compete?

[Lord Green of Hurstpierpoint]

The noble Lord raises a very important question. The Chinese are becoming more and more formidable competitors across a range of sectors, and we have to assume that that will continue. For the next generation, they will continue their fast growth and become more and more international. There are two answers to that question. One is to make sure that we are as innovative as we can be—that we move up the value chain, in short. Secondly, we need to be open to Chinese investment in this country. A key priority of my own brief is to encourage and nurture Chinese investment in this country, because they bring capital and, in some cases, expertise, which is valuable to this economy.